TORONTO, Oct. 3 /CNW/ - Scott's Real Estate Investment Trust
(TSX: SRQ.UN) ("Scott's REIT"), Canada's leading owner of small-box retail
properties, announced today it has completed the acquisition of two
income-producing properties in Quebec. The company previously announced on
June 19, 2007 that it had entered into a letter of intent to acquire the
The properties are both single-tenant retail centres leased exclusively
to Laurentian Bank. The first property is 6,478 sq. ft. and is located at a
major intersection in Longueuil, Quebec while the second property is 2,989 sq.
ft. and is located in a high-traffic retail district in Lachine, Quebec. The
two properties hold a weighted average lease term of approximately eight years
and the aggregate purchase price is $2.15 million.
"We are pleased to close this acquisition as these two properties
complement and strengthen our existing asset portfolio," said John Bitove,
Chairman and CEO of Scott's REIT. "Our strategic process requires careful due
diligence when completing acquisitions and these properties are no exception
as Laurentian Bank is a strong brand with considerable consumer awareness in
This acquisition is immediately accretive to unitholders.
Scott's REIT enters into new purchase agreement
Scott's REIT also announced today that it has entered into a purchase
agreement to acquire an income-producing property in Ontario.
The agreement is for a 14,000 sq. ft. single-tenant unenclosed retail
centre located in the centre of Hanover, a town on the boundary of Bruce and
Grey Counties. The property is occupied by Pharma Plus and has approximately
eight years remaining on a quadruple net lease.
"Once this acquisition is complete, our asset portfolio will include
202 income-producing properties moving us closer to our goal of doubling our
asset base within three years," said Bitove.
The acquisition is subject to customary conditions to closing, including
satisfactory due diligence and financing and is expected to be immediately
accretive to unitholders.
About Scott's Real Estate Investment Trust
Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property
owner with 201 properties in seven provinces across Canada. Scott's REIT's
properties are well-located and geographically diverse across Canada and
nearly all properties are long-term quadruple net leases. The REIT has a
70.6 per cent interest in Scott's Real Estate LP. To find out more about
Scott's Real Estate Investment Trust (TSX: SRQ.UN), visit our website at
This media release contains forward-looking statements. Such statements
are based on current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might differ
materially from projections suggested in any forward-looking statements due to
factors such as the competitive nature of the quick service restaurant
industry, the ability of Scott's REIT and Scott's Real Estate LP to execute a
growth and development strategy, the reliance of Scott's REIT and Scott's Real
Estate LP on key personnel, and risk associated with the structure of income
trusts. Scott's REIT and Scott's RE LP assume no obligation to update the
forward-looking statements, or to update the reasons why actual results could
differ from those reflected in the forward-looking statements. Additional
information identifying risks and uncertainties is contained in Scott's REIT
filings with the Canadian securities regulators, available at www.sedar.com.
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